10-YEARS ACTIVITY OF THE BOURSE ELECTRONIC SYSTEM OF TRADES

The Baku Interbank Currency exchange (Baki Banklararasi Valyuta Birjasi – BBVB) celebrates today 10 years from the date of the beginning of functioning of The Bourse Electronic System of Trades (BEST).
On July 9, 2002 in the currency section of BBVB for the first time the online electronic trades took place. By means of remote workplaces the Azerbaijani banks connected to BEST system, concluded then the first «electronic transactions» which volume made this day only $7000. Being the first in the South Caucasus countries exchange electronic system, BEST became an integral part of the financial market. As a result of growth of liquidity of system less than in a year when the share of electronic transactions in a total turnover of of the exchange currency section reached 41%, the National bank of Azerbaijan made the decision on implementation of interventions in the currency market only by means of BEST.

In May, 2008, the new version of BEST was started and migration of Users on new trading and settlement system is carried out. Migration on the new software mentioned Users trading and the BEST information terminals. By means of trading terminals traders of banks carry out dealer functions on organized currency and interbank credit the markets. Thanks to the BEST new interface possibilities banks could use new type of the demands considerably increasing probability of the conclusion of currency transactions even in low liquidity of the market. With a view of risk management improvement, trading limits among traders can independently distribute by risk managers. Besides, thanks to the BEST information terminals treasurers of credit institutions, finance directors of holdings and big corporate customers, and also mass media have an opportunity to conduct monitoring of segments of the financial market of the country in real time. It answers the concept of development of BBVB which aspires to give to all Users equal access to the markets and to provide them with the high-quality services including as services in the organization of the trades, settlements, to management of a number of the major risks, and IT support.

Introduction of the BEST new trading and settlement system allowed the exchange to involve new financial instruments. In the future, BBVB will continue development of new technological ideas, introduction of new financial instruments and the services provided to clients on currency and money segments of the financial market.
In ten years of work of system in it more than ten thousand transactions which volume in aggregate exceeded 12.5 billion in a dollar equivalent are registered.
The system constructed on the basis of a principle of universality in rendering of exchange services, represents today a modern platform for integrated management of currency risks and short-term liquidity of banks. BEST allows the Azerbaijani banks not only to perform operations with foreign currencies (USD, EUR and RUR) with dates of valutation Т+0, Т+1 and Т+2, and also transactions on the tools EUR/USD_TOD, EUR/USD_TOM, SWAP_USD/AZN, SWAP_EUR/AZN, but also to conduct active loans and placement of money in the organized interbank credit market.
It should be noted especially that from the beginning of work of electronic system of the trades which has been officially registered as a trademark «Birja Elektron Sistemində Ticarət», BBVB reduced his commission fees in currency section on the USD/AZN tools – from 0,075% to 0,03%. The volume of commission fees from banks buyers of a foreign currency is limited by the sum in the size equivalent to $500. Besides, with a view of further increase in liquidity of BEST, BBVB entered corresponding changes into tendering regulations. The electronic trades on a currency platform is carried out within morning and day sessions, and time of the trades and settlements is considerably increased.